Draghi sends EUR cheaper
22 January, 2016
There was some much needed respite for Euro buyers yesterday, as Mario Draghi said at the ECB’s monetary policy press conference that the ECB would “review and possibly reconsider” monetary policy at its next meeting in March. The central bank kept interest rates on hold at 0.05% as expected, but the implication that there may be more monetary stimulus to come as soon as March, sent the Euro into retreat against the Pound for one of the first times this year.
The Pound also took some solace from a recovery in global stock markets, recovering slightly against the US Dollar through the day’s trading too.
The moves were gentle rather than pronounced however, and should not be taken as a sign that the Pound’s recent decline is over. Rather they could be an opportunity to buy at a slightly better rate than we saw yesterday, in a market that is still likely to be falling.
Retail sales today
UK retail sales figures are announced at 9.30 this morning, with expectations of a 4.3% year-on-year growth figure expected for December. Given recent focus on the UK economy, a figure much different to this will be likely to affect the Pound either positively or negatively. Public sector borrowing figures are released at the same time, and later we have Canadian inflation to end the week.
There is no important data due out on Monday so if we do see exchange rates reversing yesterday’s gains today, there is not much to look out for to help rates recover in the early part of next week.
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